US indices closed weaker again last night, with the S&P500 and tech-based NASDAQ indices both closing down ~1.5%, led by Amazon.com (AMZN US), which tumbled over 4% after US regulators sued them, alleging that the internet giant is illegally maintaining monopoly power. However, it wasn’t a one-man show on the downside, with all US big tech closing lower in the session while consumer facing stocks were also weak.
- The classic “ABC” target for the NASDAQ is around 14,200 or ~2.5% lower.
- Our preferred scenario remains that US stocks will headed to fresh 2023 highs into Christmas.
MM remains cautiously bullish toward US equities short-term
Add To Hit List
The HK China Index has slipped back to the mid-point of its last 12 months’ trading range, we continue to believe its descent both before and after COVID is maturing, but whether we see another down leg below the psychological 5000 area is likely to be dependent on Beijing’s success in reviving their lacklustre economy – an important read through for the Australian Resources Sector.
- We are 50-50 whether this China-facing index makes new 1-year lows, but we would accumulate into such a breakdown.
MM is neutral toward China facing stocks short-term
Add To Hit List
